Housing is the next shoe to drop.
It’s far more overvalued than the equity markets.
Going to get ugly.
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Interesting that Free Market Capitalism freaks out when the government stops injecting $12 trillion dollars into the economy from the 2008 crash until now.
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So what you’re saying is now would be a good time to be sitting on half million in cash and have no debt or mortgage? Cool,
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As voters see their 401k balances, and hopes of a dignified retirement, evaporate, surely they will reward the political party that controls all three branches of the Federal government! Poverty may be the least of our troubles, though, if Biden channels JFK and LBJ and allows the proxy war in Ukraine to metastasize into a shooting war between nuclear-armed superpowers.
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The all-knowing market gives the thumbs down to the big Twitter “deal”.
Even Republican senator tom cotton from Arkansas knew that keeping interest rates low by Jerome Powell, chairman of the federal reserve, and continually supported by the ex-president with his badgering of Powell to keep rates low or lower them would eventually come back to bite us with inflation and uncertainty. Global pandemic and inability to see the future by the ex-president is really going to hurt us. Obama was so good at managing chaos but I’m not sure Joe has the smarts. Why Joe kept Powell is really unsettling. Dick Cheney and DJ trump were similar in that if you did the exact opposite of what they pushed for, you’d probably be very close to right.
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Only 2.8% ? I was hoping for 28%
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Everyone’s about to feel a lot less wealthy in the next six months…….the party’s over 
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Everyone knows and knew the market is overvalued....As far as peoples 401K portfolios, please understand the 401k was set up to help people offset pensions.. which has all been written about many times. Alas, we are now all peasants groveling and tearing up over changes in the fantasy of the Valued Markets.. Long and well lives the Aristocracy. Now Crypto that is where the Value is....Hah!!!
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The Market is and always has been run by robber barons and their successors and now algorithms. Dollar for dollar mutual funds lose money and now especially. Very little if any regulation and no anti trust regulation makes suckers out of those with pensions who hope to have a modicum of comfort in retirement.
“All errors are errors of impatience.”
Franz Kafka
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@Joy Ocean
And the remaining errors are not acting preemptively.
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Remember when the market crashed because the Geeks were going to default on four hundred billion in loans? Today’s market kept sky rocketing while the whole world burned, it is about time that investors have come to their senses.
The world is at war, China and Russia are closed for business. The overpriced house you just bought will be underwater by the end of the year.
The party is over.
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That sort of pessimism is not good for the 1: market, and 2: your wellbeing.
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@Tamzaa Maybe not.
But it's good for strategizing where to put investment funds and where to deleverage from.
This market has been too euphoric for too long. It's time for reality to finally sink in and allow the crash that should have happened a couple years ago.
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Wait about one year, and we'll talk about where the stock market is. In the mean time, get outside and enjoy the nice weather.
"Don't just do something, stand there." John Bogle (RIP)
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@Pat
Right on. Market volatility? Yawn. I am going outside to enjoy spring.
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While many see doom, others see opportunities. There still are only two places to put your money, 1. A mason jar buried in the yard or 2. The US stock market.
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@Frank Vaslo Thats why we are in this mess now.
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@Frank Vaslo or something tangible like real estate.
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Like the last 5 years, the stock market is still being driven by the wild speculations of investors. The speculation is now just downward sloping rather than upward sloping. Big business is still making very healthy profits for the most part and sitting on hordes of cash - and in the meantime raising prices far beyond what inflation would require. The rich are getting richer and the poor are getting poorer. Same old, same old. The American dream, yes?
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@Phillip Fries
couldn't agree more with you and yet I still find a segment of the population almost worships the ultra-wealthy.
The Stock Market had a very good year last year, and was overpriced, particularly the Tech Sector.
This correction just creates some buying opportunities. The US economy is in good shape, so the Stock Market will recover.
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Maybe April showers’ll bring May flowers? As long as the fed likes flowers…
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What a mess.
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Gee the stock market is plunging after years of gains. What a shock! It always happens and people are always surprised.
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Just wait until the mid-terms.
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Market should surge after the midterms and the end of the Democrat agenda
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And yet I doubt very much it will be trickling down to you personally, but you seem pleased the rich will get richer. Probably voting against your own interest.
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Get the GOP back to exploiting the working class, Serena? Always good for the markets, isn’t it?
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What we are seeing is that left wing socialists and communists aren't the best people to have running a right wing capitalist democracy. The only hope from the left is that they can spin the blame to the fed while falsely claiming they had nothing to do with it.
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The stock market is not the economy. The Fed. Chairman is a life-long Republican. In the unlikely event you’re interested in additional facts, consider these: “The U.S. unemployment rate is 3.6 percent — only a hair above its level just before the pandemic, which was a 50-year low. Corporate profits rocketed by 35 percent in 2021, and profit margins were at their widest since 1950.”
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@M Ford Sure. Things were so much better when TFG was handing out billions in relief to corporations, no questions asked.
Apparently neither he nor any of his economic experts was paying attention during the 2008 bailouts when TARP was implemented to recover from the gains when the investments stabilized.
Instead the Covid handouts boosted corporate stock prices and the portfolios of the 1% while adding another 4 trillion to the debt.
But I guess it’s Bidens and the progressives fault because their much smaller stimulus (1.7 trillion) went mostly to working class Americans.
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The stock market is not the lead economy, but it’s a leading economic indicator.
The longer the market remains depressed the greater likelihood the economy will enter recession about a year later.
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Unemployment is good for capitalists.
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I guess Wall Street sees Musk buying Twitter the same way I do. We will finally start getting some accountability and regulations for social media. Europe just did it, and for us not to is irresponsible.
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Why would you expect Musk taking Twitter private to increase regulation?
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@David - 1 Europe just put new regulations in place. 2 - If Musk indeed does open Twitter up to all forms dishonesty and debauchery, Congress will be more inclined to act.
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The Progressive Democratic economy has replaced the Conservative Republican economy.
This is of course a simplification. Joe Biden did not cause the war in Ukraine. That said, some of the blame does rest at the feet of former President Obama, who essentially had a policy of appeasement following the Russian annexation of Crimea in 2014. His notorious "red line" debacle regarding the use of chemical weapons in Syria likely also emboldened Putin.
The financial crisis underway on Wall Street, coupled with 8.4% inflation (the highest in 40 years) is highly worrisome. This is the worst month for stocks since the start of the Pandemic, March 2020. But the March 2020 decline was unavoidable, given the circumstances. The current decline, which afflicts both equities and bonds, is largely a result of government policies, mostly those of the Progressives, with massive government spending funded by debt.
It's time to be afraid. The 2022 election, and more importantly the 2024 vote, cannot come soon enough.
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@Alex "It's time to be afraid."
Fear is all conservatives have to sell. They certainly aren't running on ideas.
You're going to blame Obama for Putin's behavior? How about the ex-president who called him a genius the day before the invasion?
Inflation is high? Sure, and notice it's high everywhere in the world. Ditto for oil prices. The U.S. accounts for about 5% of the world population. These are largely external factors.
A lot has happened. The worst pandemic in over a century, followed by the first major land war in Europe in almost a century, all with Democrats not having enough Senate control to do make necessary changes like hasten the switch to renewable energy.
If you think I'm going to vote for the people who tried to stage a coup, or who first pretended Covid was a hoax, then a flu, and then advised treating it with hydroxychloroquine or ivermectin or bleach--or who don't believe in climate change--and who have nothing to offer but spite? Forget it.
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@Alex If I recall, the first few rounds of government checks, PPP loans, and expanded unemployment happened under the former guy's reign.
Fear is all the right has, how about proposals for solutions? Yeah I thought so, just like the wonderful health care plan that will be unveiled in two weeks.
Let's see the bipartisan Infrastructure bill that Biden got passed. (wow) start to play out and make differences in our quality of life, and lets see pieces of BBB get implemented.
peace
-j
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@M.
Please know that I am not defending Trump.
It's still the case that Obama's 2014 policy, essentially one of appeasement, may well have helped empower Putin. It is my fantasy that one day Putin will face an international court, so we could ask him. I realize this is unlikely.
Inflation is at record highs in the US for multiple reasons; it is highly likely that massive government spending funded through debt is a major factor. The progressive spending went far beyond what was appropriate to address the pandemic.
Yes, we should move to renewable energy, but this can't happen overnight. Biden's enthusiastic cancelation of the Keystone pipeline his first day in office was a mistake, as is his deliberate slow speed on issuing needed permits for oil & gas production in the US.
Most Republicans didn't claim the pandemic was a hoax.
It's worth remembering though that the pandemic took hold in January and February of 2020. There was a delay in recognizing what was happening, and a big reason for the delay was the progressive obsession with impeaching Trump. Given Republican control of the Senate, a conviction wasn't going to happen, and the effort distracted the public and the government.
There was (and still is) disagreement on whether Draconian lockdowns were a good thing, or whether they went too far. Also remember that most of the protests for racial justice, while well motivated, violated the lockdowns, and by their very nature likely helped spread the virus.
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In the musical “Mame,” her lawyer gets off the phone with her stockbroker on Oct. 29, 1929 and informs her that she’s lost everything. To which Vera Charles adds, “Thank God I never put anything aside!” One of the great moments in theater.
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The world economy has been built on fossil fuels for over 100 years. I fear what will happen as this non-renewable resource runs out. The shift to green energy is politically impossible.
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@Nick
Nonsense. The switch to green energy is already going on. I sometimes get 3 calls per day from people wanting to sell me a solar rooftop. As I explain to each of them, I'm already in the process of sourcing some used panels for a 9.5 kW DIY rooftop.
Green energy is cheaper than fossil fuels. The payback period on my rooftop will be 7 years, and then I'll get another 20+ years of free power after that.
Meanwhile, the automakers are going electric - simpler vehicles, higher margins, and ripe for an eager market.
We will never run out of oil before we switch to green energy. That is because fossil fuels will continue to rise in price as green energy continues to get cheaper. At some point fossil fuels will be viewed as ridiculously costly, and the only people buying gasoline will be antique car enthusiasts.
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Thank heaven I'm not quite at the age where I need to use my Roth IRA for retirement income, because I made the mistake of checking it a few days ago and, well, it wasn't pretty. Overall I've lost enough since January 2020 to buy myself a new Mercedes-Benz. Moral of the story: I'm not checking again for at least 6 months because, really, there's no point when I know that the market is down and the numbers are going to be abysmal.
Oh, and to those radical liberals who constantly harangue Wall Street as "the enemy", clearly they don't have nor do they know people that have 401K's or IRA's that we depend upon for our economic security. Fact is when Wall Street does well, the vast majority of Americans do too.
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If you’ve lost a Mercedes since Jan 2020, well, the S&P dropped then soared past that peak, remaining vastly above Jan 2020. But keep your money in the market, it’ll buy you several Mercedes when you finally need it, or better yet, peace of mind. As for liberals hating Wall Street, in the last couple months, despite losses greater than a fleet of Mercedes, I will defend deep criticisms of pay and tax inequities, and advocate for unionization to bolster worker rights, all while appreciating the benefits of long-term investing. Many investors detest Wall Street for distorting capitalism.
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@ManhattanWilliam I believe "Radical Liberals" would say Americans depending on Wall Street for economic security is kind of the problem there, William
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@ManhattanWilliam
This is fantasy: you sound like a Robber Baron.
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